1
PETROBRAS BUSINESS PLAN
LUCAS TAVARES DE MELLO
INVESTOR RELATIONS MANAGER
APRIL, 2010
2
DISCLAIMERDISCLAIMER
The presentation may contain forecasts about
future events. Such forecasts merely reflect the
expectations of the Company's management.
Such terms as "anticipate", "believe", "expect",
"forecast", "intend", "plan", "project", "seek",
"should", along with similar or analogous
expressions, are used to identify such forecasts.
These predictions evidently involve risks and
uncertainties, whether foreseen or not by the
Company. Therefore, the future results of
operations may differ from current expectations,
and readers must not base their expectations
exclusively on the information presented herein.
The Company is not obliged to update the
presentation/such forecasts in light of new
information or future developments.
The United States Securities and Exchange
Commission permits oil and gas companies, in
their filings with the SEC, to disclose only proved
reserves that a company has demonstrated by
actual production or conclusive formation tests to
be economically and legally producible under
existing economic and operating conditions. We
use certain terms in this presentation, such as oil
and gas resources, that the SECs guidelines
strictly prohibit us from including in filings with the
SEC.
CAUTIONARY STATEMENT FOR
US INVESTORS
Government maintains controlling interest with 55% of voting shares
Market cap of approximately US$ 199 billion as of December 31st, 2009
Foreign currency ratings from Moodys (Baa1), Standard & Poors(BBB-), and Fitch (BBB).
Incorporated in 1953 as government monopoly for all hydrocarbon activities in Brazil
Originally established as a refinery of imported crude oil
Became net exporter in 2006
60% of total equity capital (common and preferred) is now publicly traded
PETROBRAS: AN INVESTMENT GRADE, PUBLICLY TRADED, MAJOR PETROBRAS: AN INVESTMENT GRADE, PUBLICLY TRADED, MAJOR INTERNATIONAL OIL COMPANY INTERNATIONAL OIL COMPANY
Petrobras launched its ADR Program on the New York Stock Exchange in August 2000;
Brazilian Oil & Gas market was fully deregulated in January 2002.
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On August, 2000 the Brazilian Government reduced its ownership share to 55% of the voting shares through an SEC registered secondary public offering (PBR)
In July 2001, BNDESPar, sold a portion of its non-voting shares (PBRA)
Since the offering in July, 2001 the ownership structure has remained virtually unchanged.
53,6%61,6%
44,4% 40,6%
46,4%18,0%
25,1%23,1% 22,8%
10,3%9,9% 7,9%
39,8%
10,9% 29,5%26,4%20,3%
9,5%
Oct/1992 Jul/2000 After Aug/00
offering
After Jul/01 offering Dec/2009
Government Bov espa Brazil Bov espa Foreign ADRs
Foreign
37.4%
Brazilian
22.8%
(1) Includes BNDES / BNDESPAR
Shareholder Base
Government
39.8%
(1)
60% OF THE EQUITY CAPITAL OF PETROBRAS IS PUBLICLY TRADED60% OF THE EQUITY CAPITAL OF PETROBRAS IS PUBLICLY TRADED
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Exploration & Production
Downstream (Supply)
Gas & EnergyDistribution
Petrochemicals
International Biofuels
CORPORATE ORGANIZATION AND KEY OPERATING RESULTSCORPORATE ORGANIZATION AND KEY OPERATING RESULTS
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2007 2008 2009
Net Revenues 87.7 118.3 91.9
EBITDA 25.6 31.1 28.9
Net Income 13.1 18.9 15.5
Capex 21.0 29.9 35.1
Total Debt(1) 21.9 27.1 57.1
Cash & Cash Equivalents 7.0 6.5 16.2
Net Debt 14.9 20.6 40.9
Total Equity 65.2 61.9 94.1
Total Assets 129.7 125.7 200.3
Summary Financials (US$ billion- USGAAP)
-5
0
5
10
15
20
Domestic E&P Downstream Gas &Energy
Distribution International
Operating Income* (US$ billion- USGAAP)
18,9
15,513,1
2007 2008 2009(1) Includes capital leases
* Excludes Corporate and Elimination
A WORLDA WORLD--CLASS, PUBLIC, INTEGRATED ENERGY COMPANYCLASS, PUBLIC, INTEGRATED ENERGY COMPANY
Note: Peer companies selected above have a majority of capital traded in the public markets.
(mm
bo
e/d
)
2008* Refining Capacity
Source: Evaluate Energy and Company reports
Source: PFC Energy *Report December 2009
Market Value as of March 16th, 2010
(US
$ b
n)
Source: Bloomberg
2, 679 2, 6582, 164 2, 115
833315
5, 573
3, 133
3, 933
X OM R D S B P C O P T O T P B R C V X E N I ST L
(th
ou
san
d b
oe
/d)
BP XOM RDS CVX PBR COP Total ENI BG
Gas Production boe/d
Oil Production boe/d
3.9 3.9
2.7 2.52.5
2.2
1.7
0.6
84%(oil)
3.2
2009 Oil & Gas Production
314
197181
747896
138149
179
X OM P B R R D S B P C V X T O T E N I C O P ST L
6
Business Plan 2009-2013
25%
2%2%
7%
3%2%
59%
E&P
RTC
G&E
Petrochemicals
Biofuels
Distribution
Corporate
US$ 174.4 billion
104.6 (*)43.4
11.8
5.6 3.0
2.8
3.2
(*) US$ 17.0 billion allocated to Exploration
INCREASING INVESTMENTS WITH CAREFULLY CRAFTED SPENDING INCREASING INVESTMENTS WITH CAREFULLY CRAFTED SPENDING PROGRAMPROGRAM
PN 2009-13 | Brazil/International
91%
9%
158.2
16.2
Brazil
International
US$ 174.4 billion
MONITORING FINANCIAL RATIOSMONITORING FINANCIAL RATIOSo Leverage between 25% and 35%
o Net Debt/ EBITDA up to 2.5X
RELEVANT ASSUMPTIONS FOR THE PROJECTIONSRELEVANT ASSUMPTIONS FOR THE PROJECTIONSo Brent curve upward trend
o Capitalization value and timing
o Funding needs for the new Business Plan 2010-2014
INVESTMENT 2010 INVESTMENT 2010 2014 2014
BETWEEN US$ 200 TO US$ 220 BILLIONS:BETWEEN US$ 200 TO US$ 220 BILLIONS:
7
2009 CAPEX AND 2010 ESTIMATE 2009 CAPEX AND 2010 ESTIMATE
0
5.000
10.000
15.000
20.000
25.000
30.000
35.000
40.000
45.000
50.0002009
2010
2009
2010
2009
2010
2009
2010
2009
2010
2009
2010
2009
2010
2009
2010
2009
2010
2009
2010
2009
2010
US$ MM
2009 average without Petrobras
2010 average without Petrobras
Source: Evaluate Energy and Company Reports
2010 Petrobras CAPEX , of R$ 88.5 Bi, was converted using FX rate of 1,87 R$/US$ (2010 Petrobras premise). For 2009, preliminary results in USGAAP Not audited
*
8
8.0
4.8
2.9 2.82.5 2.4 2.3 2.3 2.2 2.0 1.9 1.7 1.7 1.7
-
1
2
3
4
5
6
7
8
9
10
US
Ch
ina
Jap
an
Ind
ia
Ru
ssia
Ge
rman
y
Bra
zil
Ca
nad
a
S. K
ore
a
Sau
di
Me
xic
o
Fra
nce
Iran UK
Ital
y
2008 Total Oil Consumption by Country (mmbo/d)
DOMINANT POSITION IN A LARGE AND GROWING EMERGING MARKETDOMINANT POSITION IN A LARGE AND GROWING EMERGING MARKET
Source: BP Statistical Review 2009, PFC Energy
Brazil is worlds seventh-
largest oil consumer.
Brazil oil consumption
growing at 1.99% p.a;
OECD oil consumption
growing at 0.17% p.a.
19.4
100
105
110
115
120
125
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
Brazil US OECD World
Total Oil Consumption mb/d (index)
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(000 b/d)
FAST GROWING DOMESTIC DEMANDFAST GROWING DOMESTIC DEMAND
230 257
326 332 367419
250 220255
24684 89118
179
738 771
901
1224
112
150
182 208
274
400
215208
109119
2007 2008 2013E 2020E
Others
FO
Diesel
QAV
Naphta
Gasoline
LPG
1,906
3.3% p.y.
3.0% p.y.1,944
2,257
2,876
10
GAS & ENERGY: BALANCING SUPPLY & DEMANDGAS & ENERGY: BALANCING SUPPLY & DEMAND
11
27 3033 36
40 41
1719
2734
3945
1419
36
41
44
49
0
20
40
60
80
100
120
140
2008 2009 2010 2011 2012 2013
National Supply Bolivian Supply LNG: Existing Regas Capacity LNG Additions
Industrial Demand Other Uses Thermoelectric Demand
68
96
112
123
135
58
Industrial
Other Uses
Electricity Generation
Domestic Supply
Bolivia
LNG
million m
3/d @ 9,400 k cal/m3
926
1,477
4.528
3.692
Projects in Portfolio New Investments Proposed
Projects in Portfolio New Investments Proposed
Natural Gas
US$ 8.2 billion
Energy
US$ 2.4 billion
G&E 2009-13 InvestmentsUS$ 10.6 billion
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Petrobras Total Production (x 1000 boe/d)
1.335
232
4424
1.500
252
3522
1.540
251161
85
1.493
265168
94
1.684
274163
96
1.778
277142
101
1.792
273126
110
1.855
321124100
1,971
316
14197
2.680
634
210
131
3.920
1.177
409
223
2001 2002 2003 2004 2005 2006 2007 2008 2009 ..... 2013 2020.....
* Consider +- 2,5%
9.7% p.y.
2,4002,3012,2972,217
2,0202,0371,8101,635
5.6% p.y.
7.7% p.y.
3,655
5,729
Oil production - Brazil Gas production - Brazil Oil production - International Gas production - International
PETROBRAS PRODUCTION GROWTHPETROBRAS PRODUCTION GROWTH
2,525
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DOMESTIC E&P PROFILEDOMESTIC E&P PROFILE
2009 Proven Reserves (SPE)
9% 10%
57%
24%
14.17 billion boe
Shallow water (0-300m)Onshore Deep water (300-1500m) Ultra-deep water (> 1500m)
Source: Petrobras
14% 10%
57%
19%
2009 Production
2,287 thousand boed
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COMPETITIVE ADVANTAGE IN THE DEEPWATERCOMPETITIVE ADVANTAGE IN THE DEEPWATER
XOM
APC
6%
MUR
Petrobras operates 22% of global deepwater production and 18% of all operating vessels
Source: (1) PFC Energy | Note: Estimated volumes above reflect what operators are responsible for producing, not what they keep on a net working interest or entitlement basis. Minimum water depth is 300 meters; twelve operators above account for 94% of global deepwater production in 2008. (2) Copyright 2008 ODS-Petrodata, Inc.
2008 Gross Global Operated Deepwater Production
PBR
22%
XOM
14%
RDS
14%
STL
14%
BP
9%
TOT
8%
CVX
6%
APC
5%
BG
4%
MUR
2%
REL
1%
HES
1%
2%
HES
1%1%
REL
8
45
5
8
10
12
13
15
15
100
9
12
0 20 40 60 80 100 120
Petrobras
Shell
StatoilHydro
ExxonMobil
BP
Chevron
Anadarko
Total
CNOOC
ConocoPhillips
ENI/Agip
Others
FPSO Semi Spar TLP Other
FPS OperatorsAll Contracted Vessels (252 Vessels Total)
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Petrobras Pre-salt Oil Production (000 b/d)
2013 2015 2017 2020
62152
160
422
463
873
632
1.183
Pre-Salt Petrobras Pre-Salt Partners
219
1,336
1,815
582
Pre-salt Capex Through 2020 (US$ billion)
Petrobras Total Pre-salt Capex (Production Development)
Santos Basin Pre-salt
Esprito Santo Pre-salt (includes post-salt fields)
2009-2013 2009-2020
28.9
18.4
10.3
111.4
98.8
12.6
PREPRE--SALT OIL PRODUCTIONSALT OIL PRODUCTION
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ESTABLISHED EXPLORATION PORTFOLIO AT DIFFERENT STAGES ESTABLISHED EXPLORATION PORTFOLIO AT DIFFERENT STAGES OF DEVELOPMENTOF DEVELOPMENT
Potiguar
SEAL& REC & TUC
Bahia Sul
Esprito Santo
Campos
Santos
Ceara & Potiguar
Pelotas
Margem Equatorial
Solimes
So Francisco
Petrobras
Others
Brazil Exploration: 2009-13 US$ 13.8 bn
Exploratory Area: 157.59 km
278 exploratory blocks
30 appraisal plans
303 production concessions
1616
PREPRE--SALT JOINT VENTURESSALT JOINT VENTURES
EXX (40%), HES (40%) e BR (20%)
Blocks Consortium
BMS-8
BMS-9
BMS-10
BMS-11
BMS-21
BMS-22
BMS-24
BR (66%), SH (20%) e PTG (14%)
BR (45%), BG (30%) e RPS (25%)
BR (65%), BG (25%) e PAX (10%)
BR (65%), BG (25%) e PTG (10%)
BR (80%), PTG (20%)
BR (80%), PTG (20%)
Blocks Consortium
BC-60 BR (100%)JubarteCachaloteBalia FrancaBaleia AzulBaleia An
Shore Distance = 300 km
Total Area = 15.000 km2
Shore Distance = 60 km
Total Area = 3.000 km2
Total Area: 149,000 km2 Area Under Concession: 41,772 km2 (28%) Area Not Under Concession: 107,228 km (72%) Area With Petrobras Interest: 35,739 km2 (24%)
1.1-2 bi
boer
JUBARTEESS-103 CHL-4
BFR-1
BAZ-1
1111----2 2 2 2
Bi Bi Bi Bi boerboerboerboer
BMBM--SS--1111
(Tupi)(Tupi)
17
1977
Enchova
410ft
1988
Marimb
1610ft
1994
Marlin
3,370ft
1997
Marlin Sul
5,600ft2003
Roncador
6,180 ftDRILLING MILES BY WATER DEEPTH
GOM wells are a continuation of our process of
developing deepwater production in offshore Brazil
PROCESS OF DEVELOPING DEEPWATER PRODUCTION IN OFFSHOREPROCESS OF DEVELOPING DEEPWATER PRODUCTION IN OFFSHORE
2009Tupi
7,125 ft
2010CascadeChinook 8,250ft
TUPI
WATER DEPTH = 7,125 ft
TOTAL DRILLING DEPTH = 17,431 ft
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USING CONTRACTS AND LEASES TO SECURE NEEDED DRILLING USING CONTRACTS AND LEASES TO SECURE NEEDED DRILLING ASSETSASSETS
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Water Depth
Total per year
34 rigs operating in 2009
27 rigs contracted to be delivered until 2012
Bids are out to construct 28 rigs in Brazil, being delivered between 2013 and 2018
500-1000m
1000-1500m
2500-3000m
9
8
4
34
2000-2500m
12
1
1500-2000m
2009 2010 2011 2012 2013- 2018
+28 to be leased
+3
+5
+3
+12
+3
+4
+7
+4
+4
+8
+1
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CAMPOS BASIN: A GIANT TECHNOLOGY LABCAMPOS BASIN: A GIANT TECHNOLOGY LAB
Petrobras Offshore Facilities
EquipmentInstalledDec/2009
Planned(2010)
733 72
2
633
358
35
3
2
74
4,425
3,391
1,630
40
2
Subsea Trees
Subsea Manifolds
Flexible Flowlines
(km)
Umbilicals(km)
Rigid Pipelines
(km)
Floating
Production
Units
Mono-buoys
ManifoldSubsea Trees
Umbilicals
Flexible Flowlines
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Items Un. TOTAL
Reactors un 280
Oil and water splitter un 50
Storage Tankers un 1.800
Turrets un 550
Items Un. TOTAL
Power Generators un 500
Filters un 300
Flares un 30
Items Un. TOTAL
Wet Christmas Tree un 500
Well Head un 500
Flexible Lines km 4.000
Manifolds un 30
Producing pipes t 42.000
Umbilical km 2.200
Dry Christmas Tree un 1.700
Onshore well head un 1.700
Items Un. TOTAL
Pumps un 8.000
Compressors un 700
Winch un 450
Crane un 200
Engines un 1.000
Turbines un 350
Structure Steal (Hull) t 240.000
Structure Steal (Platforms Hull) t 700.000
NEW EQUIPMENT TO BE CONTRACTEDNEW EQUIPMENT TO BE CONTRACTED
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LONG TERM HR CHALLENGESLONG TERM HR CHALLENGES
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
52,862Qualified
Professionals
207,643Human Resource Gap
BP 2009-13
Leasing of 19 Vessels
Refinery- Premium I
28 Rigs
146 sSpply Vessels
New Production Platforms
Promef II
Refinery-Premium II
Business Plan 2008 2012
25,540Professionals
Selected
22
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Information:
Investor Relations
+55 11 3224-1510